Legislature to examine tax cuts on fuel to curb inflation pressures
VOV.VN - Vietnam’s top legislature is set to consider sweeping temporary tax reductions on fuel, including a 0% environmental tax and 0% special consumption tax on petrol, as part of efforts to stabilise prices and ease inflationary pressures.
The proposal was endorsed by the Standing Committee of the National Assembly of Vietnam at a meeting on April 9, and will be submitted to the legislature for approval under an expedited procedure.
Under the draft resolution, the environmental protection tax on petrol (excluding ethanol), diesel, jet fuel, kerosene and mazut would be reduced to zero. The special consumption tax on petrol would also be cut to 0%, while fuel products would not be subject to value-added tax declarations but remain eligible for input VAT deductions.
The measures are proposed to take effect from April 16 to June 30, 2026, with the government authorised to adjust the duration depending on global oil price developments and domestic market conditions.
The policy comes amid heightened volatility in global energy markets, driven in part by geopolitical tensions in the Middle East, which have disrupted supply chains and pushed up fuel prices, affecting both businesses and households.
The Ministry of Finance said the temporary tax cuts are aimed at ensuring macroeconomic stability, controlling inflation and supporting economic activity, following earlier short-term measures that helped bring down retail fuel prices by as much as nearly VND6,000 per liter.
Lawmakers broadly agreed on the necessity of the policy, emphasising its role in mitigating negative impacts from rising energy costs and maintaining growth momentum.
At the same time, the Standing Committee called for ensuring fiscal balance within the approved budget deficit for 2026, while enhancing policy flexibility to respond to rapidly changing market conditions.
Market regulators were also urged to improve transparency in fuel pricing, strengthen supply chain management and crack down on speculation and hoarding, alongside tightening oversight of electronic invoicing in the sector.
The draft resolution is expected to be tabled at the ongoing first session of the 16th National Assembly for consideration and approval.
Zero fuel tax extension proposed to ease market pressure
VOV.VN - The Ministry of Finance has proposed extending the current zero-tax policy on several fuel-related taxes until June 30, 2026, in a bid to cope with volatile global energy markets and support domestic economic stability.
